On June 24, FedEx declined 6.55% in pre-market trading, trading at approximately $296.11 per share. The selloff followed the company's fiscal Q4 earnings release, which revealed deteriorating profit margins and a disappointing full-year outlook despite headline beats.

FedEx reported Q4 adjusted EPS of $6.31, exceeding the consensus estimate of $5.96, while revenue of $25 billion topped expectations of $24.04 billion, driven by domestic volume growth and pricing improvements. However, the core Express segment operating margin contracted from 8.4% to 7.7% year-over-year, pressured by employee compensation, outsourced transportation expenses, and fuel costs that surged 66% to $1.43 billion. The company also recorded a $23 million non-cash impairment charge related to the permanent retirement of 10 aircraft.

More critically, FedEx's full-year adjusted EPS guidance of $16.90 to $18.10 came in well below the analyst consensus of $19.86, reflecting ongoing headwinds from shifting global trade policies, including tariff impacts and the elimination of de minimis exemptions on low-value e-commerce shipments from China. Morgan Stanley reiterated an underweight rating, reinforcing the bearish sentiment.

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